The following data relate to notes receivable and interest for CGH Cable Co., a cable manufacturer and supplier. (All notes are dated as of the day they are received.)Apr. 10. Received a $144,000, 5%, 60-day note on account.May 15. Received a $270,000, 7%, 120-day note on account.June 9. Received $145,200 on note of April 10.Aug. 22. Received a $150,000, 4%, 45-day note on account.Sept. 12. Received $276,300 on note of May 15.30. Received a $210,000, 8%, 60-day note on account.Oct. 6. Received $150,750 on note of August 22.18. Received a 120,000, 5%, 60-day note on account.Nov. 29. Received $212,800 on note of September 30.Dec. 17. Received $121,000 on note of October 18.InstructionsJournalize the entries to record the transactions.

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Asked Dec 17, 2019
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The following data relate to notes receivable and interest for CGH Cable Co., a cable manufacturer and supplier. (All notes are dated as of the day they are received.)
Apr. 10. Received a $144,000, 5%, 60-day note on account.
May 15. Received a $270,000, 7%, 120-day note on account.
June 9. Received $145,200 on note of April 10.
Aug. 22. Received a $150,000, 4%, 45-day note on account.
Sept. 12. Received $276,300 on note of May 15.
30. Received a $210,000, 8%, 60-day note on account.
Oct. 6. Received $150,750 on note of August 22.
18. Received a 120,000, 5%, 60-day note on account.
Nov. 29. Received $212,800 on note of September 30.
Dec. 17. Received $121,000 on note of October 18.

Instructions

Journalize the entries to record the transactions.

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Expert Answer

Step 1

Note receivable:

Note receivable refers to a written promise received by the creditor from the debtor in formal, for the amounts to be settled within a stipulated period of time. This written promise is issued by a debtor or borrower to the lender or creditor. Notes receivable is an asset of a business. Notes receivable often used for the credit periods of more than 60 days.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Interest on note:

Interest on note is the amount charged on the principal value of note for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender.

Step 2

Journalize the entries to rec...

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Debit (S) Credit (S) 144,000 Account Title and Explanation Notes receivable Date April 10 Accounts receivable 144,000 (To record the receipt of note on account) May 15 Notes receivable Accounts receivable (To record the receipt of note on account) 270,000 270,000 Cash June 9 145,200 Notes receivable 144,000 1,200 Interest revenue ($145,200 - $144, 000) (To record coilection of cash on note of April 10) Notes receivable Accounts receivable (To record the receipt of note on account) 150,000 August 22 150,000 September 12 Cash 276,200 Notes receivable Interest revenue ($276,200-$270,000) (To record collection of cash on note of May 15) 270,000 6,300 September Notes receivable Accounts receivable (To record the receipt of note on account) 210,000 210,000 30 October 6 Cash Notes receivable Interest revenue ($150,750 -$1 50, 000) (To record coilection of cash on note of August 22) $150,750 $150,000 $750 Notes receivable Accounts receivable (To record the receipt of noe on account) October 18 120,000 120,000

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